Toubani Resources Ltd (ASX:TRE) has successfully raised A$3.85 million in a placement of around 33.5 million new fully paid ordinary shares at A$0.115 per share to sophisticated, professional and institutional investors as it looks to deliver its definitive feasibility study (DFS) and update its mineral resource.
In a big show of support for what the company is doing, non-executive director, Tim Kestell, has subscribed for a total of some 1.3 million shares equal to A$150,000, subject to shareholder approval.
The placement represents a 14.8% discount to Toubani’s last traded price of A$0.135 (as at April 23 2024) and 11.9% discount to the 20-day volume-weighted average price (VWAP) on ASX of A$0.130 over the period up to and including April 23, 2024.
Toubani is focused on advancing Africa’s next large gold development project with its oxide dominant 2.4-million-ounce Kobada Gold Project.
The company recently hit high-grade oxide gold intersections during infill drilling at the Kobada project in Mali, producing a screen fire assay of up to 2 metres at 178 g/t gold as part of a 19-metre intersection grading 20 g/t from 105 metres.
The new data will aid TRE in converting the Kobada gold deposit to higher JORC-compliant confidence levels, with potential to define higher grade zones.
Strong support
Commenting on the strong support for the project and the placement, Toubani CEO Phil Russo said, "We are delighted with the support received for the placement from both existing and new investors. The funding enables Toubani to complete the technical work streams necessary to deliver our DFS including updating our mineral resource following our highly targeted resource definition drilling, as well as ore reserve studies and finally, completion of an increased scale, predominantly oxide and technically simple Kobada DFS.
"Toubani is at an exciting juncture in our development with our recent drilling serving to remind us of the potential at Kobada and we look forward to defining an attractive gold development asset in a market devoid of development assets, particularly those with the attributes of Kobada."
Use of funds
Toubani is now cashed up to achieve its aims, with the A$4 million from the placement and director subscription, adding to Toubani's existing cash of around A$1 million (as at March 31 2024).
The funds will be used towards the following:
Placement details
Toubani has announced the issuance of shares under its existing placement capacities, which include 20,079,849 shares and 13,386,566 shares respectively. The settlement of these shares is scheduled for Wednesday, May 1, 2024, with the allotment set for the following day, Thursday, May 2, 2024.
Additionally, shares issued under the director subscription will require shareholder approval, anticipated to be sought at an Extraordinary General Meeting slated for early June 2024.
Canaccord Genuity (TSX:CF, LSE:CF) (Australia) Limited and Euroz Hartleys Limited have been appointed as joint lead managers for the placement.
Sternship Advisers Pty Ltd is serving as the financial adviser to Toubani in this placement.